Composecure (NYSE:GPGI) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded Composecure (NYSE:GPGI) from strong-buy to hold, adding to a mixed analyst picture that now shows a consensus Hold rating and an average target price of $15.00.
• The stock opened at $15.09, with a market cap of $4.37 billion, and the company’s latest quarterly results beat EPS expectations, reporting $0.12 per share versus the $0.09 consensus.
• Insiders bought heavily in recent months, including a large purchase by Thomas R. Knott, but the company is also facing multiple securities class-action lawsuits and fraud investigations tied to alleged misstatements about its financials and prospects.

Composecure (NYSE:GPGI - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

A number of other analysts have also commented on the company. JPMorgan Chase & Co. decreased their price objective on Composecure from $22.00 to $15.00 and set a "neutral" rating for the company in a report on Friday, May 15th. Weiss Ratings restated a "sell (d-)" rating on shares of Composecure in a report on Thursday, June 11th. Wall Street Zen downgraded Composecure from a "hold" rating to a "sell" rating in a report on Saturday, May 16th. Finally, Needham & Company LLC reissued a "buy" rating on shares of Composecure in a research report on Wednesday, March 25th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $15.00.

Composecure Price Performance

Composecure stock opened at $15.09 on Tuesday. The company has a market capitalization of $4.37 billion, a price-to-earnings ratio of -6.29 and a beta of 0.84. The firm has a fifty day simple moving average of $13.53. Composecure has a 1-year low of $11.22 and a 1-year high of $26.78.

Composecure (NYSE:GPGI - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.12 EPS for the quarter, topping the consensus estimate of $0.09 by $0.03. The business had revenue of $421.20 million for the quarter. During the same period in the previous year, the firm posted $0.25 earnings per share. As a group, sell-side analysts forecast that Composecure will post 0.9 earnings per share for the current fiscal year.

Insider Buying and Selling at Composecure

In other Composecure news, insider Thomas R. Knott acquired 85,250 shares of Composecure stock in a transaction on Thursday, June 11th. The stock was purchased at an average price of $11.67 per share, for a total transaction of $994,867.50. Following the purchase, the insider directly owned 129,250 shares of the company's stock, valued at $1,508,347.50. This trade represents a 193.75% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Krishna Mikkilineni bought 8,106 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were acquired at an average cost of $12.34 per share, with a total value of $100,028.04. Following the completion of the transaction, the director owned 10,804 shares in the company, valued at approximately $133,321.36. The trade was a 300.44% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased a total of 105,237 shares of company stock valued at $1,245,734 in the last ninety days. 18.40% of the stock is owned by corporate insiders.

Composecure News Roundup

Here are the key news stories impacting Composecure this week:

• Negative Sentiment: Robbins Geller Rudman & Dowd filed a class action lawsuit against GPGI, saying purchasers of the stock between Nov. 3, 2025 and May 6, 2026 may have claims, with a lead-plaintiff deadline of Sept. 14, 2026. Article Title
• Negative Sentiment: Multiple law firms, including Kirby McInerney, Rosen Law, Block & Leviton, and Gainey McKenna & Egleston, also announced or promoted securities class-action claims and investor rights notices tied to the same alleged misconduct period. Article Title
• Neutral Sentiment: Ademi LLP and Frank R. Cruz separately announced investigations into possible securities fraud, saying GPGI may have made inaccurate statements about its financial statements, operations, and prospects. Article Title

About Composecure

CompoSecure, Inc manufactures and designs metal, plastic, composite ID, and proprietary financial transaction cards in the United States and internationally. Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products. The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which comprise the Arculus Key card Cold Storage hardware device and companion Arculus Wallet mobile App to keep the Private Key in the Arculus Key card highly secure and store cryptocurrency and digital assets.

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